The Scottish Government has officially confirmed that the First Homes Fund is making a comeback, with applications set to open by the end of June 2026.
If you are trying to secure your first step onto the property ladder, this could be the exact boost you need. To help you understand how it could help you, our mortgage advisors have broken down what the scheme actually is, how it works, and what you need to do right now to make sure you don’t miss out.
What is the First Homes Fund?
The First Homes Fund is a shared-equity scheme designed to help first-time buyers bridge the deposit gap.
Instead of a traditional grant or a cash gift, the Scottish Government provides a financial contribution to boost your deposit. In exchange, they take an equity stake in your home. The biggest perks? There are no monthly interest charges and no monthly repayments. Instead, the government simply gets its percentage share back when you eventually choose to sell the property.
While the scheme looks slightly different than its previous iteration back in 2021, the new 2026 framework offers substantial support:
- Government Contribution
Up to £10,000 interest-free towards your deposit - Maximum Property Value
Up to £300,000 - Property Types Allowed
Both new-builds and existing (second-hand) homes
- Projected Reach
Aiming to support 50,000 buyers over this Parliament
Who Qualifies as a First-Time Buyer?
The criteria are relatively straightforward but strictly enforced. To qualify:
- You must not currently own, or have ever previously owned, a residential property anywhere in the world.
- You must be purchasing the property with the help of a mortgage.
- If you are buying jointly with someone else, only one of you needs to be a first-time buyer to qualify for the scheme.
Be Prepared to Act Fast
While the return of the fund is fantastic news for the Scottish property market, there is a catch. When this fund last opened, it was so incredibly popular that a full year’s worth of funding vanished in just eight days.
Furthermore, property experts have noted that while the property value ceiling has risen to £300,000, the maximum support has dropped from the historic £25,000 down to £10,000. Because the money is stretched thinner to help a higher volume of people (targeting 2,000 buyers in the first 100 days), the initial pot is expected to draw massive traffic the second the portal goes live.
The reintroduction of this fund is going to inject a massive wave of confidence into Scotland’s housing market. When first-time buyers get moving, it unlocks the entire chain – making it a great time for sellers and buyers alike.
At DA Calder, we specialise in guiding buyers through the legal complexities of purchasing a home. From interpreting scheme guidelines to concluding your missives cleanly, we ensure your first purchase is as seamless and stress-free as possible.